Right, so on my Crate V32 Palomino, the distortion sounds great right up until about 2 o' clock, passed that and it starts to get fizzy. Since this is my first tube amp, I really don't know what the problem is. Should I change out the tubes? Or perhaps it needs a better speaker? I was considering just getting a good distortion pedal and using that as my main source of dirt.

The reason I think it could be the tubes is I got it used and I'm pretty sure the tubes haven't been changed in a while, so regardless of what I do I think a tube change is in order.
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I'd suggest trying the same one in a shop, if you find the same problems, it's just the amp. Yes most tube amps are good, but the cheap ones aren't worth sh!t, pawnshop-xtra vintage amps for less $$ are somewhat good deals if you can bargain 'em & use the saved cash to tune it up at a tech's shop, but new production run amps that cost less $$ right now are simply a racket, that's not what you should get from tube circuitry.
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If the tubes havent been changed in a while this is a logical thing to do. If it's fizzy on the gain it would be a preamp job, but it depends on the age as to which tubes need changing. Poweramp ones go much more quickly (but it doesn't sound like a poweramp problem). If this doesn't help then look at how you EQ it, look at different speakers and maybe a nice OD